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CUs a solution for consumers Mica tells FOX TV

WASHINGTON (6/5/08)--Especially in today's tough economy, consumers will do well to turn to credit unions for a good deal on financial services, Credit Union National Association (CUNA) President/CEO Dan Mica told viewers of Fox Business Channel in a live television interview yesterday.

"Credit unions are one of the best places people can go in difficult times," Mica said, explaining credit unions typically offer better rates and lower fees because they are not-for-profit cooperatives. "They are not driven by that bottom line and shareholder needs," he said. "In fact every single member of a credit union is an owner of that credit union." Mica also explained why credit unions were not caught up in the subprime debacle, pointing out credit unions as not-for-profit co-ops operate more conservatively and are more apt to hold loans in portfolio. Mortgage delinquency and charge off ratios are both less than 1%, well below bank averages, he added. "Credit unions didn't make these no document loans, these liar loans, exotic loans. They're part of the solution, not the problem, and people who got those kinds of loans are now turning to credit unions for help." The CUNA leader also told Fox Business that most consumers can likely find a credit union they are eligible to join. He offered CUNA's creditunion.coop consumer web site, which includes a credit union locator tool, as a resource.